The Supreme Court of India has upheld the legality of the retrospective application of a 28% GST (Goods and Services Tax) on online gambling. The decision was made amidst disputes between tax authorities and gambling companies.
The court ruled that companies offering real-money games are not mere intermediaries but are full-fledged service providers; therefore, they should be subject to taxation.
The 28% GST on online gambling was introduced in 2023. According to several major companies, after its implementation, the authorities began collecting GST for previous periods as well. Moreover, tax authorities demanded the tax be paid on the total amounts of bets or contributions in games, not just on the platform's commission. The total amount of claims eventually exceeded $18 billion—these were unsuccessfully contested in court by Dream11, Games24x7, Gameskraft, and several other organizations.